Registered Office: Trewidden, 26 Braemar Rd, Gosport, PO13 0YA

ANNIE MANLY & CO LTD

Independent Accountancy & Taxation Services

Tel: 01329 512999

Email: enquiries@anniemanly.co.uk

 

 

Opening Hours: Mon to Fri, 9:30am to 5pm

YOUR BUDGET HIGHLIGHTS 2020

 

These are the items included in the Chancellor's Budget 2020 Statement which we have picked out as likely to be of most interest to small businesses and in personal tax matters. For more information please don't hesitate to contact us.

 

 Extension of IR35 Rules (aka "Off Payroll Working") to the Private Sector: he confirmed that this will be effective from April 2020 despite huge representations across industry requesting at least a postponement. Please see IR35 under our 'Useful Info' Tab.

 Income Tax: personal tax allowances and the rates of income tax are unchanged and Corporation Tax remains at a flat rate of 19%.

 National Insurance: the various thresholds have been increased, reducing the burden of National Insurance for the self-employed, employees and business. Talk to us about new levels of salary for directors of private companies.

 Capital Gains Tax on sale of business: the Entrepreneur's Relief ceiling has been drastically lowered but this will only effect a tiny proportion of people, being those making very substantial profit on a business sale.

 Business Property Rates: significant help to smaller businesses in retail, leisure and hospitality sectors with an additional £3,000 grant to businesses entitled to the Rateable Value Rebate. Following the Budget, there have been significant representations from larger businesses which are likely to bear much of the impact from the spread of Coronavirus.

 Statutory Sick Pay: temporary changes to help workers and businesses during the Coronavirus outbreak, including an entitlement to SSP from Day 1 of Coronavirus-Related sick leave and a reimbursement of relevant SSP to small businesses via HMRC SSP. Entitlement from Day 1 also applies to those in the gig economy. A small business is defined for this purpose as having fewer than 250 employees.

 The introduction of a dedicated helpline for those requiring additional time to pay various taxes.

 An extension to the Bank Guaranteed Loan Scheme with up to £1.2m in extra support.

 Tax Relief for qualifying expenditure on Research & Development increased from 12% to 13%.

 Pension Fund Tax Clawback – improvement to the Tapered Annual Allowance which has led to many in the NHS, primarily Consultants and GPs, having a tax clawback on overtime at more than 100%! Very welcome, especially with this Coronavirus outbreak.

Naturally, should you wish to discuss any tax aspects in more detail please don't hesitate to get in touch.

 

For information on any other matters please click here.

 

Annie

 

Annie Manly & Co Ltd

11 March 2020